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Before it is possible to configure a rebate allocation, it is necessary to understand the mathematics behind the rebate component in the price waterfall (Figure 1). For this, consider a transaction t� t, which has a corresponding row in the transaction data mart.
As discussed in the introduction, customers may want to include the rebate in price waterfall (Figure 1), or include rebates in the calculation of pocket margins. Thus, a field in the transaction data mart is reserved for a transaction rebate amount trebate�rebate trebate, which will hold the value of the rebate bar in the price waterfall.
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To figure out how to calculate the transaction rebate amount trebate�rebate trebate, simplify the problem by considering the special case where each transaction is only associated to a single rebate r� r. Let rrebate�rebate rrebate denote the rebate amount (the amount of money which is paid back to the buyer).
One constraint of trebate�rebate trebate is that the sum of all the transaction rebate amounts, over all transactions, must be equal to the full rebate amount:
rrebate=∑t∈Ttrebate (1)�rebate=∑�∈��rebate (1)rrebate=∑trebate
t∈
where T� is the set of all transactions. This holds true for the assumption that there is only a single rebate.
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